Daily Health Policy Report
[Jun 12, 2002]
Vermont Gov. Howard Dean (D) on June 13 plans to
sign a bill that would require pharmaceutical companies to
report to the state any gifts to doctors valued at or above
$25, excluding free drug samples, the
AP/Baltimore Sun reports. Proponents of the
bill say that such gifts increase medical costs by
encouraging physicians to prescribe more expensive drugs
manufactured by gift-giving companies. A
study released in April by the
Kaiser Family Foundation found that 92% of doctors
accept free drug samples from pharmaceutical companies, and
61% accept "meals, tickets to entertainment events or free
travel." State Sen. Peter Shumlin (D), president pro tem of
the Vermont Senate, said the new disclosure requirement --
"one of a growing number" of similar state laws aimed at
controlling health care costs -- "should embarrass this
greedy industry into playing fair" (AP/Baltimore Sun,
6/12). Opponents of the bill said it is "unnecessary" in
part because the pharmaceutical industry on July 1 plans to
implement new, voluntary guidelines that "prohibi[t] or
curtai[l] most gifts, entertainment and consulting
arrangements" between drug companies and doctors (Washington
Times, 6/12). The Vermont bill would also authorize
the state to negotiate drug prices and rebates for all
Vermont residents and would require drug companies to bid
competitively to sell medications to beneficiaries of the
state's health programs (AP/Baltimore Sun,
6/12).
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